How to trade the stocks with a strong catalyst?
Mar 22, 2022We traded 2 stocks today. SPY is ripping higher for the 6th consecutive day. 1st day to break its daily 200 moving average which is very bullish. $BABA's shares are being bought back which is a strong catalyst to the long side. Companies that are buying back their shares is very bullish since once they "buy-back" their own shares, number of shares become lower, meaning lower supply thus creating a higher per share value. Also, this means that the company have enough cash to buy their own shares which is very bullish. We capitalized on this news and traded this stock to the long side. $NKE on the other hand, beats its earnings, a strong catalyst. We also capitalized on this news and traded this stock to the long side.
We teach our students to trade and capitalized on stocks with a strong catalyst in our day trading unlocked course. Sign up on our DTU course to learn more.
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